Generating Value, Creating Wealth through Property 以房产创造价值，缔造财富

Dato’ Sri Dr Vincent TiewManaging Director of Andaman Property Group

The property industry may be a competitive field but in its short 11 years in the market, the Andaman Property Group has racked up numerous prestigious awards and is on its way to achieve RM5 billion in development value. Right at the helm is Managing Director, Dato’ Sri Dr Vincent Tiew, who has led the group to achieve its phenomenal growth in the past 7 years.

Andaman Property may not be a public-listed company but in the past 11 years, it had racked up accumulated sales of RM3 billion. This is an achievement that astounded many in the industry, including public-listed developers. “We are heading towards RM5 billion before 2020 and that year will be our 15th year anniversary,” Tiew said.

The energetic 40-year-old himself has a string of awards that included the Young Entrepreneur Award 2015 by The Malaysian Australian Alumni Award, the Entrepreneur Par Excellence 2016 and Corporate Champion of The Year 2015 by McMillan Woods Global Awards, Creative Young Entrepreneur Award 2015 by Junior Chamber International Malaysia and Young Property Leader of The Year 2015 and Property Entrepreneur of The Year 2015 and Outstanding Philanthropic Individual of the Year 2014 amongst many others.

Andaman Property primarily has developments in five areas; Perak, Negeri Sembilan, Johor, Kuala Lumpur and Selangor. The uniqueness of this developer is that it strongly believes in its “Generating Value, Creating Wealth” philosophy where it sells its property at lower than market value and create wealth for its buyers. “We adopt Rober Kiyosaki’s style and we also advocate Warren Buffet whose philosophy is value in investing,” he said. The developer is confident that it could give value and create wealth for those who invests in its properties.

The developer is able to keep its prices low because of its minimal gearing as it does not take up bank loans to finance its projects. This means it is already different from other developers as it does not have to contend with loan interests. “Our mindset is different, we have minimal gearing and we believe in smooth sails for every project we undertake from smooth construction to completion and we sell it fast because we have below market price strategy. We want clear cut profit, we want clear cut savings, and we want clear cut value for money for the buyers,” Tiew said.

As for profit, Tiew said their expectations of a return for each project is not very high. “We don’t force ourselves to get at least 20% return, we are just as happy with 12% profit and this is how we manage to maintain our prices low unlike a majority of developers, especially the public listed ones, who had to aim for higher profit because they have loans to pay up and had to answer to their minority shareholders,” he said. “We optimise, we don’t maximise,” he added.

That is not all, the Andaman Property adopts a blue ocean strategy, making it the market leader in places that were previously not in high demand. Using this strategy, they are able to keep the land cost low and generate high return on investment. “We go to places most developers are yet to explore because we have no pressure in choosing and that made us very selective when we embark on a project,” he said.

Sometimes, the developer may only launch two projects per year and this is because they do not rush into deals, do not fight with other developers to grab for land and they pick the land bank that is cheaper and not high in demand. “Our Andaman strategy is just in time, JIT, so when we sign up to buy, within 12 months we will launch the project,” he said.

Another secret to the group’s success also partially lays with its almost 100 hardworking staff whom the company rewarded with bonuses, incentives, profit sharing and annual trips that averaged between 12 to 60 months per employee. “No other developer can give more than 12 months each year like what we’ve been doing in the past three years and each year, we have a minimum of three company trips for all staff, even the office boy, our receptionist and tea lady,” he said.

It is no wonder that Andaman Property garnered the Best Employer of the year 2015 and Most Promising Award 2014 by SOBA, STAR Outstanding Business Award. “This is because our motto is to work hard, play hard so when I start to build the company back in 2010, I built a new culture structure to reward the staffs that the shareholders agreed to,” he said.

Andaman, with an annual sales turnover of RM500 million, is also known as the Guaranteed Return Rental leader in the market and is now undertaking a new business model in project management. It takes up project management contracts from other developers and land owners on top of penetrating new market segments and continuing with new land development projects.

Next up is the property management project it had undertaken for the developer and landowner of Arc Ampang Ukay. Covering some 80 acres of land, the project will feature quality residential and commercial offerings. “We also hope to be public listed one day,” he said.

The property industry may be a competitive field but in its short 11 years in the market, the Andaman Property Group has racked up numerous prestigious awards and is on its way to achieve RM5 billion in development value. Right at the helm is Managing Director, Dato’ Sri Dr Vincent Tiew, who has led the group to achieve its phenomenal growth in the past 7 years.

Andaman Property may not be a public-listed company but in the past 11 years, it had racked up accumulated sales of RM3 billion. This is an achievement that astounded many in the industry, including public-listed developers. “We are heading towards RM5 billion before 2020 and that year will be our 15th year anniversary,” Tiew said.

The energetic 40-year-old himself has a string of awards that included the Young Entrepreneur Award 2015 by The Malaysian Australian Alumni Award, the Entrepreneur Par Excellence 2016 and Corporate Champion of The Year 2015 by McMillan Woods Global Awards, Creative Young Entrepreneur Award 2015 by Junior Chamber International Malaysia and Young Property Leader of The Year 2015 and Property Entrepreneur of The Year 2015 and Outstanding Philanthropic Individual of the Year 2014 amongst many others.

Andaman Property primarily has developments in five areas; Perak, Negeri Sembilan, Johor, Kuala Lumpur and Selangor. The uniqueness of this developer is that it strongly believes in its “Generating Value, Creating Wealth” philosophy where it sells its property at lower than market value and create wealth for its buyers. “We adopt Rober Kiyosaki’s style and we also advocate Warren Buffet whose philosophy is value in investing,” he said. The developer is confident that it could give value and create wealth for those who invests in its properties.

The developer is able to keep its prices low because of its minimal gearing as it does not take up bank loans to finance its projects. This means it is already different from other developers as it does not have to contend with loan interests. “Our mindset is different, we have minimal gearing and we believe in smooth sails for every project we undertake from smooth construction to completion and we sell it fast because we have below market price strategy. We want clear cut profit, we want clear cut savings, and we want clear cut value for money for the buyers,” Tiew said.

As for profit, Tiew said their expectations of a return for each project is not very high. “We don’t force ourselves to get at least 20% return, we are just as happy with 12% profit and this is how we manage to maintain our prices low unlike a majority of developers, especially the public listed ones, who had to aim for higher profit because they have loans to pay up and had to answer to their minority shareholders,” he said. “We optimise, we don’t maximise,” he added.

That is not all, the Andaman Property adopts a blue ocean strategy, making it the market leader in places that were previously not in high demand. Using this strategy, they are able to keep the land cost low and generate high return on investment. “We go to places most developers are yet to explore because we have no pressure in choosing and that made us very selective when we embark on a project,” he said.

Sometimes, the developer may only launch two projects per year and this is because they do not rush into deals, do not fight with other developers to grab for land and they pick the land bank that is cheaper and not high in demand. “Our Andaman strategy is just in time, JIT, so when we sign up to buy, within 12 months we will launch the project,” he said.

Another secret to the group’s success also partially lays with its almost 100 hardworking staff whom the company rewarded with bonuses, incentives, profit sharing and annual trips that averaged between 12 to 60 months per employee. “No other developer can give more than 12 months each year like what we’ve been doing in the past three years and each year, we have a minimum of three company trips for all staff, even the office boy, our receptionist and tea lady,” he said.

It is no wonder that Andaman Property garnered the Best Employer of the year 2015 and Most Promising Award 2014 by SOBA, STAR Outstanding Business Award. “This is because our motto is to work hard, play hard so when I start to build the company back in 2010, I built a new culture structure to reward the staffs that the shareholders agreed to,” he said.

Andaman, with an annual sales turnover of RM500 million, is also known as the Guaranteed Return Rental leader in the market and is now undertaking a new business model in project management. It takes up project management contracts from other developers and land owners on top of penetrating new market segments and continuing with new land development projects.

Next up is the property management project it had undertaken for the developer and landowner of Arc Ampang Ukay. Covering some 80 acres of land, the project will feature quality residential and commercial offerings. “We also hope to be public listed one day,” he said.